Anyone watch Autoline Detroit?

Messages
3,593
Location
Outside smalltown, IL
I watch the show on Speed and even though I have trouble listening to the swarmy guy who hosts it, he's usually on the money with information and opinions. This Sunday he was discussing the damage that GM and Ford have done with their Employee Pricing Programs. It seems that "pulling buyers forward," they have managed to get vehicles off the lots, but at the same time their market shares have dropped 2-3% each. And now that they hooked some potential future buyers with these programs, it's only going to get worse. I thought it was an interesting take.
 

Kestas

Staff member
Messages
13,940
Location
The Motor City
This is the first time that I remember where increased sales have not resulted in increased profits. But Ford and GM have got to clear out their inventory or start idling plants. Usually during tough times (like now) the manufacturers extend the warranty period on vehicles. This way they keep the current prices, move inventory, and delay the costs to futher down the road when perhaps the company is in better shape to absorb the increased warranty costs. On the other hand, I'm glad the companies are getting away from rebates, which were started in the early 80s by Lee Iacocca. I hate those price games. All it did was result in artificial sticker prices.
 
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